Michigan life insurance state exam answer

Which is TRUE regarding the annuitant, when the annuitant is NOT the policy owner? 1. The annuitant has the right to name the beneficiary 2. The annuitant is the person paying the premiums 3. The cash value is available to the annuitant for withdrawals 4. Annuity payments will be based on the annuitants life expectancy - Answer-Annuity payments will be based on the annuitants life expectancy Signing an applicants name for insurance is known as...? 1. Concealment 2. Defamation 3. Coercion 4. Forgery - Answer-4. Forgery Failure to pay a penalty assessed by the commissioner may result in...? 1. Revoked or suspended license 2. Require the license to retake the examination3. Complete 5 extra hours of continuing education 4. Pay a late charge of 1.5% - Answer-1. Revoked or suspended license Two business business partners own life insurance, which or the following allows the surviving partner to use death benefit to purchase the deceased owners share? 1. Buy-sell agreement 2. Key employee life insurance 3. Business continuation 4. Accidental death - Answer-1. Buy-sell agreement Policy owner surrenders a policy for its cash value, when is tax liability incurred? 1. The cash value exceeds all premiums paid 2. The cash value is less than premiums paid 3. The policy is exchanged for a policy of equal value 4. The party is transferred to a third party - Answer-1. The cash value exceeds all premiums paid When is insurable interest required? 1. At time of claim2. At time of application 3. In event of a policy loan 4. Within the first year of death - Answer-2. At the time of application